HARTE PROPERTY DEVELOPMENTS LIMITED

Executive Summary

Harte Property Developments Limited shows persistent liquidity challenges with significant negative working capital and reliance on director funding. While the company holds substantial fixed assets and is compliant with filing obligations, erosion of net assets and cash flow concerns pose material risks to solvency. Further due diligence on asset valuation, director loans, and operational cash flows is recommended to fully assess financial stability and sustainability.

HARTE PROPERTY DEVELOPMENTS LIMITED - Analysis Report

Company Number: 12729180

Analysis Date: 2025-07-29 19:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, evidenced by persistent negative net current assets and a declining net asset base. The high level of short-term liabilities relative to current assets indicates potential difficulties in meeting obligations as they fall due.

2. Key Concerns:

• Negative Working Capital: The company has substantial net current liabilities (£232,149 as of 31 July 2024), indicating it does not have sufficient short-term assets to cover its short-term liabilities. This situation has persisted consistently over the last several years.
• Reliance on Director Advances: A notable creditor balance (£76,659) owed to a director, interest-free and repayable on demand, suggests dependency on related party funding to support liquidity, which may not be sustainable or formalized.
• Declining Net Asset Value: Net assets have decreased from £26,906 in 2023 to £17,857 in 2024, signaling erosion of equity and potential financial distress.

3. Positive Indicators:

• Stable Fixed Assets Base: The company holds tangible assets valued at £250,000, which have been maintained at this level and represent a material asset backing the business.
• No Overdue Filings: The company is current with both its annual accounts and confirmation statement, demonstrating compliance with statutory filing requirements.
• Ownership and Control: The company has clear ownership structure with identified Persons with Significant Control (PSCs), which may facilitate decision-making and governance.

4. Due Diligence Notes:

• Assess Valuation of Fixed Assets: The property valuation is director-based and should be independently verified for reliability and market accuracy.
• Review Director Loan Terms: Investigate the nature, terms, and sustainability of advances from directors, including repayment plans and potential impact on cash flows.
• Examine Cash Flow Projections: Given negative working capital, detailed cash flow forecasts and plans to address liquidity shortfalls are critical for assessing operational viability.
• Operational Income and Profitability: As abridged accounts exclude profit and loss details, further information on revenue streams, profitability, and cost structure is needed to evaluate business sustainability.
• Management and Governance: Confirm the experience and stability of management given recent director appointment changes, and review any related party transactions in detail.